Economic Affairs

The US dollar has become a wrecking ball

Its sharp rise threatens to aggravate debt and currency crises around the world, including in Asia.

The US dollar index has risen more than 20 per cent in the past year. PHOTO: EPA-EFE
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The roaring US dollar is turning into a wrecking ball that will hit emerging economies especially hard, including those in Asia. Added to the impact of Russia's war on Ukraine, high food and fuel prices, a likely global recession and China's economic slowdown, the ingredients of a perfect storm are in place.

The US dollar index, which measures the greenback against a basket of six major currencies, has risen more than 20 per cent in the past year. Every Asian currency without exception has fallen against the greenback.

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